IIFL Finance Ltd is a diversified non-banking financial company (NBFC) offering home loans, gold loans, business loans, microfinance, and capital market financing. Part of the IIFL Group, it has historically grown through aggressive lending and branch expansion. However, recent quarters have seen significant stress in its financials, including a net loss of ₹409 Cr (TTM) and negative ROE, raising concerns about asset quality and profitability. While the company maintains a large loan book and strong retail presence, its current performance warrants caution. This article provides a balanced, fact-based outlook and realistic share price targets for each year from 2026 to 2030.
Given the current losses, negative ROE, and uncertain earnings recovery, upside is highly speculative. Targets assume:
Return to profitability by FY27
Stabilization of asset quality (GNPA <3%)
P/B normalization to 2.0–2.5x (from current 3.0x)
Year
Target Price Range (₹)
2026
₹460 – ₹520
2027
₹480 – ₹560
2028
₹500 – ₹610
2029
₹520 – ₹660
2030
₹540 – ₹710
⚠️ Important: These targets reflect recovery scenarios, not growth. Even at ₹710 in 2030, returns will lag peers unless fundamentals improve sharply.
Year-wise Breakdown
IIFL Finance Share Price Target 2026
Year
Target 1
Target 2
2026
₹460
₹520
Rationale: Near-term pressure continues due to legacy developer loan provisioning. Q3 FY25 loss of ₹578 Cr severely impacted sentiment. Upside limited until Q4 shows profit recovery.
IIFL Finance Share Price Target 2027
Year
Target 1
Target 2
2027
₹480
₹560
Rationale: Potential stabilization in the gold and home loan segments. If microfinance and SME books perform well, a gradual return to modest profits is possible.
IIFL Finance Share Price Target 2028
Year
Target 1
Target 2
2028
₹500
₹610
Rationale: By 2028, if the company exits stressed developer exposure and focuses on retail lending, ROE could turn positive (>8%).
IIFL Finance Share Price Target 2029
Year
Target 1
Target 2
2029
₹520
₹660
Rationale: Long-term play on India’s credit gap—but only if execution improves. Competition from banks and other NBFCs remains intense.
IIFL Finance Share Price Target 2030
Year
Target 1
Target 2
2030
₹540
₹710
Rationale: The upper end assumes sustained profitability, ROE >10%, and loan book growth >15% CAGR. Highly optimistic given current trajectory.
Strengths vs Risks
✅ Strengths
Large distribution network (4,800+ branches)
Diversified product mix (gold, home, SME loans)
Strong brand recall in semi-urban India
⚠️ Risks
Net loss and negative ROE
High provisioning on legacy real estate loans
Declining promoter stake (now <25%)
Zero dividends and no near-term earnings visibility
Investment Suitability
Factor
Assessment
Risk Profile
Very High (distressed NBFC)
Time Horizon
Long-term (5+ years) – only if recovery materializes
Volatility
High
Dividend/Income
None (0% yield)
Ideal Investor
Deep-value investor with high risk tolerance; not for conservative portfolios
FAQs
No—not at current levels. The company is unprofitable with deteriorating fundamentals. Wait for consistent quarterly profits before considering entry.
Uncertain. Recovery depends on resolving legacy NPAs and refocusing on retail lending. Execution risk remains high.
Due to Q3 FY25 net loss of ₹578 Cr, driven by ₹1,000+ Cr provisioning on developer loans. Investors fear further slippages.
Standalone net loss of ₹578 Cr (vs profit of ₹411 Cr YoY). Provisions spiked to ₹1,235 Cr from ₹150 Cr.
Not comparable. Zerodha is a stockbroker; IIFL Finance is an NBFC. They serve different purposes.
Final Verdict
IIFL Finance is in a turnaround phase with significant downside risks. While its scale and brand offer long-term optionality, the current financial stress makes it unsuitable for most investors. Our 2026–2030 price targets (₹460–₹710) assume a gradual recovery—but even then, returns may underperform the broader NBFC sector. Avoid until at least two consecutive profitable quarters are reported.
📌 Disclaimer: Price targets are estimates based on current fundamentals and sector trends. They are not investment advice. Please consult a SEBI-registered advisor before investing.
Hi, I’m Raj Mittal, a stock market content writer focused on company analysis, share price trends, and fundamental research. I create simple, research-based insights to help investors make smarter market decisions.
